2024 Car Insurance in Australia: Trends and Predictions
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As we cruise into 2024, the Australian car insurance landscape is shifting gears, driven by technological innovation and always-evolving consumer needs. So hop into the passenger seat as we take you on a journey though some of the major car insurance trends we expect to see in 2024!
1. Usage-based and pay-as-you-go insurance
In 2024, Australia's car insurance landscape is set to evolve significantly, driven by the uptake of usage-based insurance (UBI). KOBA's success with its ‘pay as you drive’ (PAYD) model, which bases premiums on distance driven (clocked in real-time), reflects a growing consumer preference for flexible insurance options.
Simultaneously, ROLLiN is testing the waters of the ‘pay how you drive’ (PHYD) approach with its Safe n' Save product, which assesses driving behaviours such as speed and braking through an app on your smartphone. This product is currently only available to business customers, but could be rolled out to a wider audience.
These developments, coupled with global trends towards more personalised and behaviour-based insurance models, suggest that 2024 could be the pivotal year where UBI gains widespread acceptance in Australia.
Prediction: We will see a ‘pay how you drive’ drive car insurance option become available to the general public in 2024.
2. Electric and hybrid electric vehicles (EVs and HEVs)
The market share of EVs and HEVs in Australia soared to 8.4% in early 2023, a trend which is only expected to grow. So, the question becomes: how will this influence the car insurance industry?
While typically cheaper to drive, EVs and HEVs often have unique risk profiles and higher repair costs than traditional vehicles, meaning insurers have to jump through hoops to accommodate them. This will eventually suck up too many resources, and lead insurers to offer bespoke policies tailored to these vehicles.
And as this segment grows, it could eventually alter how insurance is structured and priced for all drivers. So keep an eye on this space; 2024 could be the year we finally see EV-specific insurance policies.
Prediction: We will see the first EV-specific insurance policy launch in Australia in 2024.
3. Technological advancements and AI integration
In 2024, advances in AI could lead to more efficient claims processing and the development of personalised insurance products based on driving data.
These enhancements will be part of a broader trend towards digitisation and tailored customer experiences. And who knows, you might actually start to enjoy interacting with your insurer’s chatbot, as this technology will also continue to improve.
Prediction: Your insurer’s chatbot will actually become useful in 2024.
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Compare today's car insurance deals
As you await to see what changes 2024 brings to the insurance industry, don’t forget that there are plenty of Australian insurers currently shaking things up. From Rollin' Insurance's month-to-month model to Kogan's entry with competitive discounts, and lots of other insurers offering deep discounts, there’s plenty to choose from in 2024!
1. Pay month-to-month with no cancellation fees
ROLLiN' Comprehensive Car Insurance*
- Pay for insurance month-to-month, like a subscription, with no cancellation fees
- Mozo Experts Choice Exceptional Value Car Insurance Award Winner 2023^
ROLLiN' is shaking up car insurance with a new pay-as-you-go approach that lets you pay month-to-month without any lock-ins or cancellation fees. So if you don't need to drive for a certain amount of time, you can simply cancel your cover without penalty and pick it back up when required. You'll enjoy 24/7 online claims support and a lifetime guarantee on authorised repairs, plus if you accidentally damage your windscreen, sunroof or window glass, ROLLiN' will fix them for free (once per insurance period). The standard is excess is $800 (including under 25s) but $3,000 for any unlisted driver so make sure regular drivers are listed on the policy.
2. Award winning policy and get a discount in first year
Virgin Money Price Saver Comprehensive*
- Save 15% on your first year’s premium when you buy online
- 2023 Mozo Experts Choice Award Exceptional Value Insurance Winner^
This low cost policy from Virgin Money offers a no claim discount up to 15% and plenty of flexible features. You’ll also be taken care of in an emergency, with up to $200 per-day in travel and accommodation costs covered after an accident (maximum $1,000 in total), plus $500 for emergency repairs to get you driving again in the short-term. There’s also hire car cover for 14 days to a maximum cost of $1,000 after a theft or not-at-fault accident. There is a young driver excess of $600 and the choice of monthly premiums but similar to other insurance providers this will cost extra. 2023 Mozo Experts Choice Award Exceptional Value Insurance Winner.^
3. Buy online and get a discount
Budget Direct - Gold Comprehensive Car Insurance*
- 15% online discount on your first year’s premium
- Mozo Experts Choice Value Insurance Provider of the Year - 2023^
Budget Direct is offering drivers a super easy way to save with a 15% discount on your first year’s premium when you purchase a new policy online. You’ll also get tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service and a hire car if your car happens to be stolen. In addition to the basic excess, if you or another driver have an at fault accident, you will be required to pay an additional excess if the driver is under 25, hasn't had a full Australian licence for more than 2 years, or isn't listed as a driver on your policy. You can opt for a monthly repayment option but this will cost you extra. It takes 2 minutes to get an online quote and see how much you could be saving with the Mozo Experts Choice Award winning Value Insurance Provider of the Year 2023!
4. Benefit from 24/7 roadside assistance
Youi Comprehensive Car Insurance*
- New-for-old car replacement (within 2 years & a listed driver is the first registered owner)
- Emergency roadside assistance included
In an emergency Youi's policy can provide up to $1,000 to cover repairs without an insurance assessment, which can alternatively be spent on accommodation and travel if you’re more than 100km away from home. Emergency roadside assistance is also included as standard. Youi offers new-for-old car replacement and policy holders can get back onto the road after a theft or not-at-fault accident with Youi’s hire car cover (for up to 14 days). Monthly premiums cost extra and there is an additional excess for drivers not listed on the policy, and if under the age of 25 years.
5. Discount for new online applicants
Kogan Comprehensive Car Insurance*
- $75 off new online applications (T&Cs apply)
- New-for-old-car replacement (within 3 years)
- Reasonable car towing and storage costs covered
Kogan Comprehensive Car Insurance brings with it one of the highest level of protection. It covers your vehicle for damage caused in an accident, weather events, fire and theft, plus damage your car causes to other people’s vehicles and property.
When you insure your brand new car with Kogan, if it’s written-off within the first three years and has driven less than 60,000 kms, they’ll replace it with a new car, as well as cover reasonable towing and storage costs in the event of an accident.
Plus, you’ll score a $5 Kogan.com credit when you complete a quote and new applicants get $75 off their first year's policy when they apply online (T&Cs apply). Higher excesses apply to drivers under the age of 25.
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Car Insurance Awards